gross turnover

[d.v. gupta]

we are carrying business of tour and  travels. we purchase air tickets and package for our customer. the vendor pays us commission on purchase of tickets and packages. my question is whether my gross turnover will be sale value or only commission. suppose we purchase air ticket for Rs. 100000 and pays Rs 98000 . Rs 2000 is our commission. what will be our gross turnover for tax audit purposes.Rs 2000 or Rs 100000.00

AI Summary

Tour and travel business seeks clarity on tax audit turnover: Total sales vs. commission earned. Service tax options outlined. A business involved in tour and travel services queries whether their gross turnover for tax audit purposes should be based on the total sale value of air tickets and packages or solely on the commission earned. They illustrate a scenario where a ticket purchased for Rs. 100,000 earns a Rs. 2,000 commission. The response suggests either paying service tax on the commission at 10% or opting for a composition rate of 0.6% or 1.2% on the gross value of Rs. 100,000, as per service tax rules applicable to air travel agents.